Home Depot's cash conversion cycles are reported as follows: Days sales outstanding (DSO) + Days inventory outstanding (DIO) - Days payable outstanding (DPO) = Cash conversion cycle Sales (Revenues) Cost of goods sold 2023 2022 6.2 7.2 61.4 69.4 (40.2) (39.1) 27.4 37.5 $83,954 58,301 What is the amount of cash inflow the firm realized by reducing its days inventory outstanding (DIO) in 2023? A) $1,277,83 B) $1,613.26 C) $1,840.09 D) $2,323.11
Home Depot's cash conversion cycles are reported as follows: Days sales outstanding (DSO) + Days inventory outstanding (DIO) - Days payable outstanding (DPO) = Cash conversion cycle Sales (Revenues) Cost of goods sold 2023 2022 6.2 7.2 61.4 69.4 (40.2) (39.1) 27.4 37.5 $83,954 58,301 What is the amount of cash inflow the firm realized by reducing its days inventory outstanding (DIO) in 2023? A) $1,277,83 B) $1,613.26 C) $1,840.09 D) $2,323.11
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 12P
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